Use the figure below to answer the following questions. (a) What is the opportunity cost of increasing
Question:
Use the figure below to answer the following questions.
(a) What is the opportunity cost of increasing investment from 6 units to 8 units?
(b) What will happen to future production possibilities if investment increases now?
(c) What will happen to future production possibilities if only consumer goods are produced now?
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Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
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a 3 units of consumer goods b Production possibilities will increase shifting the ppc to the right c ...View the full answer
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